CZ Group posted the following announcement to social media.
We are very pleased with another important milestone in the history of the CZ brand. Our parent group CZG has agreed on purchase of the American small arms manufacturer Colt. After the completion of the transaction, the legendary Colt brand will become the new sister company of CZUB.
No word on any US government oversight on the deal, considering government small arms contracts, nor the status of a possible, associated purchase of Colt Canada which could have immediate effects on the upcoming DND pistol tender.
Update: CZ stated they have purchased all the shares in Colt Holding Company LLC, the parent company of Colt’s Manufacturing Company LLC and its Canadian subsidiary, Colt Canada Corp.
Regardless, the deal should breathe some much needed life into the iconic American brand.
Update:
CZG – Ceská zbrojovka Group SE to acquire Colt
West Hartford, CT, February 12, 2021 – Colt Holding Company LLC (“Colt”) hereby announces that on February 11, 2021, it executed a definitive agreement to be acquired by CZG – Ceská zbrojovka Group SE (“CZG” or “the Group”) Colt is the parent company of U.S. firearms manufacturer, Colt’s Manufacturing Company LLC as well as its Canadian subsidiary, Colt Canada Corporation.
Subject to the terms and conditions of the definitive agreement, CZG shall acquire a 100% stake in Colt for upfront cash consideration of $220 million and the issuance of 1,098,620 shares of newly issued CZG common stock. The agreement also provides for potential earnout consideration of up to 1,098,620 shares of newly issued CZG common stock if defined EBITDA thresholds are achieved in years 2021 – 2023.
Commenting on today’s announcement, Lubomír Kovacík, President and Chairman of CZG, said:
“This merger is a strategic step for both companies. The acquisition of Colt, an iconic brand and a benchmark for the military, law enforcement and commercial markets globally, fits perfectly in our strategy to become the leader in the firearms manufacturing industry and a key partner for the armed forces. We are proud to include Colt, which has stood shoulder-to-shoulder with the U.S. Army for over 175 years, in our portfolio. We believe in the successful connection of our corporate cultures, the proven track record of the current management team and the complementary nature of the CZ and Colt brands. The combined group will have revenues in excess of USD 500 million and presents a real small arms powerhouse. The experience of CZ and Colt management will further strengthen both brands and ensure CZ and Colt continue to deliver top quality products and solutions to all our customers.”
Dennis Veilleux, President and CEO of Colt, agreed: “We are very pleased with the prospect of such a strategic combination. Having completed a historic turn-around of the operations and financial performance at Colt over the past five years, this important next step with CZG positions the company to take advantage of significant growth opportunities. We are excited to join forces with CZG which will be a powerful combination for both brands and for our customers.”
The acquisition is to be financed from CZG’s existing cash resources, including recent IPO proceeds, and from a contemplated bond issuance by CZG.
The transaction is subject to regulatory approval but is anticipated to close in the second quarter of 2021.
With this strategic move, CZG will acquire significant production capacity in the United States and Canada and substantially expand its global customer base. Colt is a traditional supplier to global military and law enforcement customers. Among others, Colt is a long-term supplier to the U.S. Army (which relationship dates back over 175 years) and, through its Canadian subsidiary, Colt is a designated exclusive supplier of small arms to the Canadian military.
I realize there might be implications for Colt Canada itself- but the newest pistol tender removed the requirement for Colt Canada to produce them- so what impact would this have on the pistol tender itself?
Now that there is an option, Colt Canada will assuredly assert itself.
Pathetic.
Samuel Colt must be spinning in his grave.
THIS ONE HURTS!
Why? Colt was dying anyways. Why not let CZ at least turn them around and keep them in business as opposed to let them disappear altogether?
Yeah, where he’s been spinning for a long, long, long time.
Perhaps CZ will teach them a thing or two about how to run a gun mfg business and make a profit.
Pathetic? You mean Colt right? They turned their back on the civilian sales and haven’t produced anything that would be worth buying if you took their name off of it for the past 10 years.
Came here to say this.
Colt hasn’t been a serious contender as an American firearms brand for quite some time despite their previous reputation.
What?
Sam Colt would approve. The Czechs aren’t punks, they believe in selling steel and were fighting the Nazis and Ruskis before Uncle Sugar did.
If you look at how CZ has taken their 1970s pistol technology to the crazy heights it is now, they are able to balance tradition and incorporate innovation. I haven’t personally bought into the CZ pistol platform, but if I ditched Glock, they’d be my first stop. The CZ company seems shooter focused, which might be good marketing, but they operate in way different plane than any of the US pistola manufacturers.
Their products don’t overlap too much either, excepting maybe a little for the Bren and the AR in military sales. It seems a good tie up.
ANOTHER AMERICAN ICON GONE!! I’ve been a COLT lover since I saw my first cowboy flick! In my eyes colt was the very heart of our nation. From the wild west, to the beaches of foreign lands, in the hands of LE and the center of the second amendment. I know they’ve had their ups and downs and the future hasn’t been friendly to the 1911. Just like Winchester foreign money took advantage to own a piece of Americana. Quality may improve new products will roll out, but the history and American pride ends here. Winchester is owned by Japan, Colt is now a Chezch Company. What’s next….MOON PIES made in China???
You had American pride in the current Colt lineup? Get real.
Their 1911’s rest on the name alone and there are better for cheaper from American companies still.
Their AR’s aren’t even built on Colt parts.
Their revolvers have been a joke since roll out with the QC problems and mediocre performance.
If you want pride in American arms, at least pick a good company to get behind.
Also, that first cowboy flick might very well have been Italian. They made a ton of the best ones.
Go see where the parts of your truck are made. I’ll wait here for the aneurysm.
Rumor is that FN is building a film studio and plans to make American style westerns
Does anyone else find it disturbing that more and more of our gun manufacturers are foreign? The military and many Federal LEO’s carry Sig’s and Glocks for pistols. The military is using HK and FN rifles, and FN machine guns. The grenade launchers are made by HK. Many of the rifles being sold to civilians are foreign. I realize we still have many brands owned and made here, but why aren’t they competitive with these foreign brands? How did all of the great firearm manufacturers fall out of favor? I see it in many other industries also. It seems as though America creates the trends, then other countries come in and replace us with better products. But I thought for sure, at least we would dominate the world with firearm companies.
It’s the arms trade. It’s not what you buy its how you buy it.
Well, if it helps, sig usa has been american the entire time despite the name.
Thanks Jelly!
Uhm no, Sig Sauer (including Sig USA) ownership is not in US hands.
Maybe if they built better guns they wouldn’t have fallen out of favor. Just a thought.
THIS ^^^^^^^^
LMT has been crushing it the past few years…UK, NZ, Estonian contracts. And they were competing against the big players. The MARS lower and MRP upper are a cutting edge design.
I would agree that LMT is clearly a quiet force in the international market, and they are beginning to listen to the American commercial market.
It remains to be seen if they have gotten their MLOK rail dimensions right when it comes to swapping out barrels without having to pull MLOK attachments off of their rails due to internal dimensional issues…
Apparently according to LMT, the Estonian Police rifle uppers were made with this capability in mind, but it would be great to see them translate the improvement to the rest of the MLC rail line too.
That being said, the MRP system makes lots of sense, and it’s great to see it validated through large-scale sales!
Barrett is a fine American Fire arms company. After you buy a couple guns from each manufactures to know who they are , then there is little to say about where the best goods are produced. I’m rather excited on the next colts to hit the market. Glad the American icon will stay alive as a Colt product under proven engineering and business practices to sustain the industries challenges. And thank you Samuel Colt, let’s all do our part.
Here is the complete press release from CZ. Colt Canada is a part of this deal https://fragoutmag.com/breaking-news-czg-ceska-zbrojovka-group-se-to-acquire-colt/
This is awesome. Hopefully this means that we can get Colt Canada stuff here and the Canadians can get a licensing agreement to make handguns.
Would be awesome to get this monolethic ARs in Europe now threw CZ! I would immidiatly get my first COLT rifle, and it would be one of my best assault rifle designs I own.
Colt is dead… Long live Czolt?
HaHa!! Good one.
https://nationalinterest.org/blog/buzz/how-colt-lost-its-big-contract-sell-us-army-rifles-71186
This short article offers a perspective.
I’m hoping CZ re-deploys the revolver smiths from Dan Wesson to the production line of the Python now that the DW 715 has been discontinued. A python built like the 715 would be glorious.
Also hoping we see the Colt Canada MPR brought to the US.
Colt has been on the verge of, or in bankruptcy off and on since the 1840s. A few gifted designers – Mason & Richards, Browning, Stoner, etc. – and the resulting government contracts seem to keep the company alive.
Best of luck luck to CZ.